SNPS dominated by bears dragging the market lower throughout the day
Synopsys Inc. (SNPS) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
SNPS ended Wednesday at 206.86 losing $4.09 (-1.94%), slightly underperforming the Nasdaq 100 (-1.67%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SNPS as at Sep 16, 2020):
Wednesday's trading range has been $6.46 (3.04%), that's slightly below the last trading month's daily average range of $7.02. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SNPS.
Notwithstanding a strong opening the share closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on September 11th, SNPS actually gained 2.65% on the following trading day.
After having been unable to move lower than 205.98 in the prior session, the stock found buyers again around the same price level today at 206.74.
Though Synopsys is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Synopsys. Out of 481 times, SNPS closed higher 57.80% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 61.12% with an average market move of 1.04%.